FX.co ★ China’s Manufacturing PMI Edges Higher in August but Remains in Contraction

China’s manufacturing sector showed tentative signs of stabilization in August 2026, with the Manufacturing Purchasing Managers’ Index (PMI) rising to 49.8 from 49.2 in July 2026. While the index remains below the key 50-point threshold that separates expansion from contraction, the latest reading points to a slower pace of decline in factory activity.

The improvement, based on data updated on 31 August 2026, suggests that conditions in the industrial sector may be gradually improving, even if underlying momentum is still weak. The move from 49.2 to 49.8 indicates that manufacturers are experiencing a modest easing in the downturn, but sustained readings above 50 will be needed to confirm a return to growth in China’s manufacturing economy.